Correlation Between Generation Mining and Roots Corp
Can any of the company-specific risk be diversified away by investing in both Generation Mining and Roots Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Generation Mining and Roots Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Mining and Roots Corp, you can compare the effects of market volatilities on Generation Mining and Roots Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Generation Mining with a short position of Roots Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Mining and Roots Corp.
Diversification Opportunities for Generation Mining and Roots Corp
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Generation and Roots is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Generation Mining and Roots Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roots Corp and Generation Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Generation Mining are associated (or correlated) with Roots Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roots Corp has no effect on the direction of Generation Mining i.e., Generation Mining and Roots Corp go up and down completely randomly.
Pair Corralation between Generation Mining and Roots Corp
Assuming the 90 days trading horizon Generation Mining is expected to generate 2.64 times more return on investment than Roots Corp. However, Generation Mining is 2.64 times more volatile than Roots Corp. It trades about 0.14 of its potential returns per unit of risk. Roots Corp is currently generating about -0.06 per unit of risk. If you would invest 52.00 in Generation Mining on November 18, 2025 and sell it today you would earn a total of 24.00 from holding Generation Mining or generate 46.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generation Mining vs. Roots Corp
Performance |
| Timeline |
| Generation Mining |
| Roots Corp |
Generation Mining and Roots Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Mining and Roots Corp
The main advantage of trading using opposite Generation Mining and Roots Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Mining position performs unexpectedly, Roots Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Roots Corp will offset losses from the drop in Roots Corp's long position.| Generation Mining vs. American Lithium Corp | Generation Mining vs. Kenorland Minerals | Generation Mining vs. Fury Gold Mines | Generation Mining vs. Li FT Power |
| Roots Corp vs. Reitmans Limited | Roots Corp vs. Reitmans Canada | Roots Corp vs. Transat AT | Roots Corp vs. Supremex |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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